Insurance is one of many industries that has wavered on process automation for some time, and though some of the concerns are well-intended, they’re all outdated. Business process automation is now incredibly robust that it can bring a lot of benefits to any business, even those as sensitive and intricate as the insurance business.
With that in mind, it’s important to look at what benefits are really affecting insurance especially. There’s a lot to take in: everything from the way data is handled according to specific governance standards to the enhancement of core processes throughout the business journey. By looking at the following factors, you’ll be able to see why the insurance industry can no longer afford to wait — process automation is the way to go.
Handling Copious Amounts Of Data
While there are plenty of industries that deal in data and use it as a big part of what they do, this is more true for insurance companies than most other types of business. In fact, within the insurance business process, any given handler of data may be forced to input, fact-check, and correct copious amounts of data from various clients using various sources of client input. A human handling so much data can and will lead to inevitable errors, and when that happens, it might affect a lot more than one entry, one customer, one record. It might affect a whole database. However, by introducing an automated process by which this data is gathered, sorted, and stored without the need for human interaction, there’s a lot more that can be done with it without fear of data contamination and other such risks.
Compliance With Industry Regulations
If a large amount of data was enough to mess things up accidentally, there’s even more that can happen if an insurance company chooses not to store and transfer their gathered data according to the industry regulations. Thanks to the overlap from the insurance industry with various other industries, there can be a number of regulations whose governance creates points of contention for an organization: GLBA and HIPAA, for example. However, when using process automation, there are fewer human elements in the mix, and a business process automation software has specific ways to comply with the various data governance standards that can and will affect the insurance business. No matter what aspect it is, financial data, health data, or general data, there’s a measure of protection in place that should be respected and upheld by the organization and its processes. With automation to aid said processes, this isn’t nearly as much of a concern.
Enhanced Claims Processing
Whatever types of claims are coming your way, you’re an insurance firm, and you need to process these with accuracy and in a timely fashion. These claims can include various certificates, reports, photos, and customer details; however, there’s always a chance that these details or other parts of a claim can get mismatched, misappropriated, or misplaced. By using an automated workflow dedicated to claims processing, though, you can look forward to less human error in this fashion and far easier processing overall. Automations in place could even extract information from the provided materials in a claim to contextualize and further the process without even needing input yet from an insurance agent.
Easier Policy Management
An insurance business process automation software that makes it even easier to move things along is the use of automation in policy issuance. Issuing policies, or even updating them after they’ve undergone the checks and balances in place, is a process that doesn’t necessarily need human hands in it at every step of the way. Issuance, in particular, can be yet another thing that takes up less time and less energy from your personnel, as a simple approval process or an update request can act as a trigger to move policies along in their own workflow, through all the human and automated steps alike.
Because underwriting is such a comprehensive and time-consuming process, it’s also a prime candidate for automation, now more than ever. Intelligent automation capable of underwriting can turn a weeks-long process into one that only takes days at most. Not all process activities and materials can undergo automation in a step like this, but the goal in any such business process automation is to do away with the tasks that are repetitive, time-consuming, and/or those that require consistency that only a robot can provide. Providing specific levels of human interaction alongside AI underwriting is a tactic that can result in dramatically fewer errors in the overall process of underwriting.
Better Performance Overall
The other benefits that an insurance company will want to know about have to do with the benefits that many other businesses come across: improvements in overall accuracy, consistent service quality, greater efficiency and productivity, and even significant reductions in cost. Much of that cost, of course, is labor hours — and again, some of these processes take a seriously long time without automation, so with the improvements that BPA can offer, there’s yet another noticeable benefit: increased capacity for workloads. After all, process automation doesn’t replace humans and their work — it just changes what work gets done by humans, and by how much. Using automation to reduce iterative, unskilled labor and menial tasks makes it all the more possible to use teammates in their most skilled capacities for a greater percentage of the time.